Understanding The Concept Of No Deposit Electricity Supply

Understanding The Concept Of No Deposit Electricity Supply

Going through the Internet, you may have come across the concept of no deposit electricity. And being relatively new to these matters, you may have found yourself wondering as to what it really is, leading you to get into the research mode to find out more about it. It is that research that could have led you to this discussion, where we are trying to find out more about the workings of no deposit electricity.

Now if you are to understand the concept of no deposit electricity supply, it will be taken for granted that you already know that electricity is one thing that people have to pay for. There is virtually no way you can get electricity for free. Of course, this sounds like too obvious stuff for people who have been running households for some time. But for someone who has never run a household, and who just sees electricity (or rather its effects) everyday, there may be no way of knowing that it comes at a cost. But it sure does. The companies that generate and distribute electricity expect payment for the product, and they are usually quite keen on getting such payment in a timely manner; if one is to remain on the electricity supply grid.

Traditionally, people paid for electricity after having used it. The reasoning behind this was that there was no way one could determine how much electricity they were likely to use in advance, hence the need for a system where users would pay after using electricity. But in such a system, there was always a possibility of someone using electricity, say for a month, and then being unable to pay for it. In fact, this happened often, leading many electricity supply companies into major losses. It led to a need for a system that would ensure that the electricity supply companies would not run into major losses, in the event of customers being unable to pay for their electricity. The solution that was devised was the electricity supply deposit. The way it worked was such that you paid a deposit to the electricity supply company with your application for electricity supply. In the event that you were unable to pay for your last month's electricity supply, this is the money that the electricity supply company would pocket, and pay itself.

The recent days have, however, given rise to the no deposit electricity schemes previously alluded to. In these schemes, you don't pay any deposit to the electricity supply company.

These no deposit electricity schemes tend to be born of the prepaid electricity supply schemes. In a prepaid electricity supply scheme, you pay for your electricity units before you get to use them. Typically, you buy a card bearing the electricity units (in logical form), feed the number on it into your (smart) electricity meter, and thereby get to access the electricity units therein. In this system, the electricity supply company is at no risk of your running away with their money. They therefore need not demand a deposit from you hence the name no deposit electricity.

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